STOCK WATCH
Jhunjhunwala Vanaspati (Code No: 519248) (Rs.43) is the single-largest Vanaspati ghee manufacturing unit in India. It’s an ISO 9001:2000 certified company following a policy of perpetual technological upgradation. The company’s brand ‘Jhoola’ is the market leader in UP and other neighbouring markets. For Dec’05 qtr. it reported fabulous numbers with sales up by 41% at Rs.170 cr. when NP jumped by 155% to Rs.3.60 cr. due to huge ‘other income’ of Rs.2.20 cr. For the current nine month period it reported an EPS of Rs.11.50 which may rise to Rs.14 for full year 2005-06. After more than 10 yrs, company has returned to the dividend list and declared 10% for FY05. Though rising cheap imports is a concern but considering its huge market share, the scrip appears to be a good bet.
The Textile industry seems pretty confident that excise duty on man-made fibre will be reduced at least to 12% if not 8% in the coming budget. This will have a positive impact on synthetic yarn producers like Sarla Polyester (Code No: 526885) (Rs.128). For Dec.’05 qtr. its Sales increased by 20% to Rs.22 cr. and NP grew by 18% to Rs.3.05 cr. For the full year FY06, it is expected to report an EPS of Rs.18 and may declare Rs.3 as dividend. Domestic institutional investors are also bullish on the company. The scrip has corrected 25% from its recent high of Rs.172 and has the potential to hit Rs.200 in 12 months or so.
Kilburn Chemicals (Code No: 524699) (Rs.58) is the only manufacturer of Titanium Dioxide in India apart from SAIL. Due to increased demand from the user industry and higher anti-dumping duty, the company is witnessing the best of times. It is exploring the possibility of setting up new businesses in the area of Information Technology and also putting up windmills for generation of electricity at a lower cost. For Dec.’05 qtr, sales were up by 7% at Rs.17.40 cr. but its NP shot up by 40% to Rs.2.20 cr. i.e. qtrly. EPS of Rs.2.90. For the full year FY06, it will post an EPS of around Rs.9 and may declare Rs.2 as dividend. Long term prospects are even better. In short, a very good medium to long- term bet with a decent dividend yield.
Diamines & Chemicals (Code No: 500120) (Rs.54) is a leading producer of ethylenediamine, polamines etc and the only domestic supplier of piperazine to the pharma and other industries. For Dec.’05 qtr., it reported stunning numbers with Sales registering 150% growth at Rs.6.20 cr. and NP increased by 65% to Rs.1.80 cr. in spite of no other income compared to Rs.2.38 cr. last year. This works out to a qtrly. EPS of Rs.2.80 on its current equity of Rs.6.50 cr. For the full year FY06, it is estimated to post an EPS of Rs.8~9. The company has already declared an interim dividend of Rs.1.50 and may declare another Rs.1.50 as final dividend later. The scrip is trading extremely cheap and has the potential to double in 12~15 months. A solid bet in the petrochemical sector.
Construction sector is in full boom and the govt. is seriously working as well as spending on building world class infrastructure to compete globally. In such a scenario, the future prospects of Triveni Glass (Code No: 502281) (Rs.68) looks very promising as it is among the few to make pyrolytic reflective glass which is used in construction and building exteriors. Besides, it is one of the largest (20% market share) and wholly Indian owned entity to manufacture international quality float glass. For Dec.’05 qtr. it came out with fabulous nos. Sales were up 50% to Rs.50 cr. and NP stood at Rs.3 cr. compared to Rs.8 cr. loss last year. It’s a strong turnaround candidate due to restructuring and other initiatives and can report Rs.12 cr. NP for the full year. A screaming buy in such a growing sector.
Kilburn Chemicals (Code No: 524699) (Rs.58) is the only manufacturer of Titanium Dioxide in India apart from SAIL. Due to increased demand from the user industry and higher anti-dumping duty, the company is witnessing the best of times. It is exploring the possibility of setting up new businesses in the area of Information Technology and also putting up windmills for generation of electricity at a lower cost. For Dec.’05 qtr, sales were up by 7% at Rs.17.40 cr. but its NP shot up by 40% to Rs.2.20 cr. i.e. qtrly. EPS of Rs.2.90. For the full year FY06, it will post an EPS of around Rs.9 and may declare Rs.2 as dividend. Long term prospects are even better. In short, a very good medium to long- term bet with a decent dividend yield.
Diamines & Chemicals (Code No: 500120) (Rs.54) is a leading producer of ethylenediamine, polamines etc and the only domestic supplier of piperazine to the pharma and other industries. For Dec.’05 qtr., it reported stunning numbers with Sales registering 150% growth at Rs.6.20 cr. and NP increased by 65% to Rs.1.80 cr. in spite of no other income compared to Rs.2.38 cr. last year. This works out to a qtrly. EPS of Rs.2.80 on its current equity of Rs.6.50 cr. For the full year FY06, it is estimated to post an EPS of Rs.8~9. The company has already declared an interim dividend of Rs.1.50 and may declare another Rs.1.50 as final dividend later. The scrip is trading extremely cheap and has the potential to double in 12~15 months. A solid bet in the petrochemical sector.
Construction sector is in full boom and the govt. is seriously working as well as spending on building world class infrastructure to compete globally. In such a scenario, the future prospects of Triveni Glass (Code No: 502281) (Rs.68) looks very promising as it is among the few to make pyrolytic reflective glass which is used in construction and building exteriors. Besides, it is one of the largest (20% market share) and wholly Indian owned entity to manufacture international quality float glass. For Dec.’05 qtr. it came out with fabulous nos. Sales were up 50% to Rs.50 cr. and NP stood at Rs.3 cr. compared to Rs.8 cr. loss last year. It’s a strong turnaround candidate due to restructuring and other initiatives and can report Rs.12 cr. NP for the full year. A screaming buy in such a growing sector.
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